Chicago-based Hyatt group is in talks to acquire Starwood Hotels & Resorts, one of the world’s biggest hotel groups, in a cash and stock deal, according to a news report by CNBC.
Chicago-based Hyatt group is in talks to acquire Starwood Hotels & Resorts, one of the world’s biggest hotel groups, in a cash and stock deal, according to a news report by CNBC.
In an earnings call last week, Starwood’s CEO confirmed that the company was nearing a deal to sell the company or merge with another hotel chain.
'This has the company's highest attention,' interim CEO Adam Aron said. 'Our clear goal is to optimize the value for our shareholders.'
Connecticut-based Starwood Hotels manages a total of 1,236 hotels worldwide and owns 36 hotels with a total of 13,500 rooms. A dozen of the owned hotel assets are located in Continental Europe or in the UK.
Starwood Hotels controls the St. Regis, Westin, Sheraton and W Hotels brands and is valued at $13 bn.
Back in April, Starwood revealed it had instructed advisor Lazard to explore 'strategic alternatives to increase shareholder value', sparking speculation about a possible sale.
The review - which came only two months after the resignation of CEO Frits van Paasschen - was announced during a presentation of the company's first quarter results which showed a slowing business with earnings per share dropping by 18% to $0.59 at end March 2015, from $0.72 in the first quarter of 2014. Revenues fell 3% over the same period.